09:31:12 I'm going to beginning now.
>>
09:31:17 Absolutely.
Thank you
09:31:24 .
Wonderful.
Got it.
09:31:30 Okay.
Let me go over our
09:31:34 overview.
We've already called it to order.
We will do our roll
09:31:37 call in just a few moments, and then we will
09:31:40 approve our minutes.
We've got space for some public
09:31:44 testimony, and then some updates around what's going on
09:31:47 in the project.
Some
09:31:50 presentations today, and then we are going to do something super
09:31:54 exciting, we're going to have a moment of putting new leadership
09:31:57 in place.
It may not be a shift at all,
09:32:00 but we're going to make sure we
09:32:03 appropriately identify the chair and
09:32:07 co-chair for this work.
So, with that
09:32:10 being stated, let's
09:32:13 do our Roku r
09:32:17 roll call real quickly.
See
09:32:20 if you can see everyone.
Go back to gallery view
09:32:23 for just one moment.
09:32:31 Thank you very much.
09:32:41 Allan
09:32:45 lozo.
>> Thank you.
I'm the bond oversight
09:32:48 vice chair, I'm traveling at the moment but I will
09:32:51 be back at me computer and join you in a bit so you
09:32:54 can see my face.
>>
09:32:57 Awesome.
09:33:02 I'm looking for -- is Todd in?
09:33:06 >> Dr. Holt, Todd will not be --
09:33:09 had a last-minute emergency that will delay
09:33:12 his participation today.
>> Got you.
09:33:16 Thank you.
09:33:20 Susan.
>> Susan
09:33:24 Emmons.
Bond oversight committee member.
I
09:33:28 use she/her pronouns.
>> Wonderful.
09:33:32 And last but not least,
09:33:36 I don't see -- looking
09:33:39 for you.
>> I don't see
09:33:44 Anales.
>> She will be joining us later in the meeting.
09:33:47 >> I did see that.
We will wait for the vote until we have
09:33:50 a quorum.
Right now we have two of
09:33:53 our four, that Todd won't be able to make
09:33:56 it.
But those are the things that happen to
09:33:59 us all.
Life is always
09:34:03 full of living.
09:34:07 Let's take a moment and approved our
09:34:10 minutes.
Hopefully all the members or each of you were
09:34:13 here and had a chance to look over the minutes from our last
09:34:17 meeting.
Any questions or is there a
09:34:20 motion?
>> I move we accept the minutes.
09:34:23 They seem very thorough and complete.
>> Thank
09:34:27 you, Susan.
09:34:36 >> Second.
Are we watting until the other
09:34:39 members come, Dr. Holt, or are we
09:34:42 going to vote now.
>> We can wait to
09:34:46 approve the minutes until Analis
09:34:49 gets in.
She won't be in for a while, and I don't think
09:34:53 Todd is going to be in at all.
>> I'm happy
09:34:56 to second and move forward now if we're able
09:34:59 to.
>> I guess, you know, with four
09:35:04 members having two present, it kind
09:35:07 of meets the minimum requirements.
>>
09:35:10 Good, let's do it.
>> Yeah,
09:35:13 excellent.
Thank you, sir.
I appreciate
09:35:16 it.
We have a moment for public testimony.
09:35:20 We didn't have anyone sign up in
09:35:24 advance.
Other than commissioner Ryan's
09:35:28 assistant, and I don't know, Karen, if you meant to
09:35:31 sign up for public testimony or not.
But how we do public
09:35:34 testimony is we allow two minutes for
09:35:37 each person to share their voice, their
09:35:41 thoughts, their concerns.
We ask that it be in relationship to
09:35:45 the agenda of the day, and that if there
09:35:48 are things you're concerned about that are outside of the
09:35:51 agenda that you follow up with one of the members of the Portland Housing
09:35:55 Bureau.
Now, normally, when we are present
09:35:58 I have us all raise our hands but I will
09:36:02 have us maybe wave in the camera if you are a staff member of
09:36:05 the Portland Housing Bureau so people know who to reach out to.
09:36:09 Thank you very much.
So, for our public
09:36:12 testimony, let's open the floor and give a moment
09:36:16 or two.
Is Karen in the space?
09:36:19 And, Karen, you did mean to
09:36:22 sign up for
09:36:26 public testimony?
09:36:33
>> Karen hasn't joined the meeting today.
09:36:36 >> Is there anyone else who wanted to take advantage of
09:36:39 the public testimony moment?
You can indicate it by
09:36:42 raising your hand.
09:36:46 I can't see the full screen, so, if
09:36:50 I'm missing anyone, please help me
09:36:54 out here.
09:36:59 Okay.
With no indication, we will keep
09:37:02 building.
Let's go to our bond updates.
09:37:07 Project milestones.
Jill, I believe
09:37:10 this is you.
09:37:18 >> Sorry.
09:37:22 Let me -- hold on.
There you go.
09:37:25 Sorry about this, but we're trying to also get some
09:37:28 technology going, so I'm
09:37:31 on here, on my computer as well
09:37:35 as on the -- in the room.
So for
09:37:38 the record, I'm
09:37:41 Jill Chen,
09:37:45 portfolio preservation manager.
I'm
09:37:48 a little cautious about touching that thing.
I'll
09:37:51 just put it in front of me.
09:37:53 Okay.
Great.
Next slide, please.
09:37:57 Great.
Perfect.
I
09:38:00 just wanted to highlight the fact that, as you
09:38:03 saw in this slide, things are
09:38:07 going really well in terms of moving our
09:38:12 projects from construction into opening.
09:38:16 We've got a number, the dark blue
09:38:19 graph is almost catching up to the green
09:38:22 one and we're hopeful by the
09:38:25 end of this collar dar year we would open about
09:38:28 a how to -- calendar year, we would open about a
09:38:33 thousand new
09:38:37 units.
In Cathedral
09:38:41 Village, they had the grand opening celebration
09:38:45 September 2022, and I believe the development team
09:38:48 actually will be here later for
09:38:51 a presentation, so feel free to ask them any
09:38:54 questions you have.
09:38:58 And, the other one that will be opening
09:39:01 is, I believe, is Hayu Tilixam.
That one has already opened
09:39:04 and we're waiting for some celebration
09:39:07 dates.
Starlight, which is a
09:39:11 project with Central City Concern, they have a grand
09:39:15 opening on November
09:39:18 15.
And, Emmons Place will also open some time
09:39:21 later this month
09:39:24 .
And Las Adelitas is on track for November.
09:39:27 So there are a number of celebrations coming up.
09:39:30 In terms of the big spread
09:39:34 sheet, not spread sheet, that big sort of dashboard
09:39:37 that you see, there are some highlights in
09:39:40 red, and I just wanted to touch base
09:39:45 on that
09:39:53 .
Alder 9, they're also
09:39:59 coming in
09:40:02 .
PHB has agreed, you can see on
09:40:05 that big dashboard, PHB is providing
09:40:10 additional 4.73 million to help them move through the funding
09:40:13 gaps, and they will be closing in January of
09:40:16 2023.
So that's excellent news.
09:40:20 They actually -- they're beginning it now, they had
09:40:24 an increase of almost $10 million so the fact that they
09:40:27 were able to resolve a lot of that is a credit to the
09:40:31 development team.
We
09:40:35 also had a change -- (inaudible).
09:40:40 And, also, a swap out a couple of the
09:40:44 studios with four bedrooms, so a little bit
09:40:48 larger
09:40:52 Suzes.
The
09:40:55 second project is Francis Clare, that is
09:40:59 moving forward.
This is a
09:41:02 project with Cathedral Village and it
09:41:06 is in the (inaudible) neighborhood.
09:41:09 That one beings similar to Alder 9, also had a cost
09:41:12 increase in excess of $3 million.
09:41:15 PHB was able to increase their funds,
09:41:18 frankly, by only about 350,000.
It was great.
And
09:41:22 that project is also moving forward.
They've
09:41:26 applied for private activity
09:41:30 bonds and P
09:41:42 (inaudible):
09:41:46 149 building in southwest
09:41:49 Barbur.
Founding gap of about 8 million.
It did not receive
09:41:53 Oregon housing community
09:41:56 services TIF funds so PHB is
09:41:59 working with the developer and other partners
09:42:02 to look at next steps.
09:42:08 Next slide,
09:42:13 please.
Similar to what I mentioned last
09:42:16 time, the market for projects haven't
09:42:20 necessarily changed that much.
Costs
09:42:23 are still increasing at about 1% per
09:42:26 month.
Continuing supply chain
09:42:30 issues.
The update here is on the
09:42:34 private activity bonds, OHCS, we
09:42:37 opened the private opportunity bond
09:42:40 window that ended in
09:42:43 Sunday, October 2, so we are all the waying to see how many
09:42:48 projects came in
09:42:51 and what is the total
09:42:56 (inaudible).
We currently understand there is oversubscription
09:42:59 in the 2023, I call it
09:43:02 availability.
It is also over subscription
09:43:05 for 2024.
So going forward, we are trying to make sure our
09:43:09 partners and our projects line up
09:43:12 so that we see private activity bond
09:43:16 allocations.
One of the other things I did
09:43:19 want to mention
09:43:22 is funding gaps remain, alignment of
09:43:25 public resources is key in
09:43:29 solving these funding gaps, so it is
09:43:32 not just one jurisdiction bringing in capital but it needs to
09:43:35 be a
09:43:38 concerted effort.
Some other items
09:43:41 is looking at that projected operating cost.
09:43:45 Maybe it is sub,
09:43:52 sufficient, especially when we see wages and inflation is
09:43:55 almost double digit.
The projection in two years time needs to
09:43:58 be lined up so it is more
09:44:01 realistic.
Next slide, please.
09:44:06 The dashboard, you will see the
09:44:10 diversity of the Portland Housing Bureau projects.
It is
09:44:13 across all geographies, the deep of
09:44:16 buildings and the level of the affordability.
We
09:44:20 saw the green open, is the green here, and
09:44:23 that consisted of five projects.
612
09:44:27 units of which 421 are
09:44:30 family-sized.
196 are 30% affordable
09:44:34 units.
That which is opening for the rest of this
09:44:37 year, I had rattled off a number of projects.
09:44:41 Those are in the dark blue, and that consists
09:44:44 of 385 units of which 97 are
09:44:47 family sized and
09:44:51 225 are (inaudible).
We as an
09:44:55 organization made tremendous progress in meeting both the
09:44:58 family-sized units and the deeply affordable.
09:45:02 So in total, over a thousand
09:45:05 units will open by 2022.
Next slide,
09:45:09 please.
09:45:13 And there are the projects.
It's exciting
09:45:16 to see we've got -- the green ones are already
09:45:21 open.
That's Crecent Court, Hayu
09:45:24 Tilixam, Cathedral Village.
We
09:45:28 talked about Crecent Court.
And then
09:45:33 starlight, Emmons Place.
Crecent Court opened
09:45:36 in May.
Cathedral Village in August.
Hayu
09:45:40 Tilixam in sentiment and the next one
09:45:43 coming -- in September.
And the next one coming
09:45:46 up is in October.
(inaudible).
09:45:50 So very much looking forward to it.
Next slide,
09:45:54 please.
09:45:57 In terms of 2023 openings, we've
09:46:01 got the Aurora in
09:46:05 Portland.
Anna Mann in the Kennedy
09:46:08 neighborhood, and the Joyce.
Aurora
09:46:11 is February, 2023.
Joyce is
09:46:15 targeted April,
09:46:18 2023.
Anna Mann has different time
09:46:22 frames between February
09:46:26 for the building, March for the addition and
09:46:30 May for the north.
Three
09:46:33 buildings.
Also, Emmons Place north building will open in
09:46:39 May.
Unfortunately,
09:46:42 Powell, 3000 Powell, six units, slipped and
09:46:45 it will go into January 2024.
That's it for
09:46:48 the updates.
Any questions?
>>
09:46:52 Thanks, Jill.
Let's begin with Susan.
09:46:55 Susan.
>> This is a more of
09:46:58 a general question, I don't expect an answer
09:47:01 today, but I'm interested long-term after these
09:47:05 buildings are open, do we monitor
09:47:08 occupancy and retention?
Do we expect to get
09:47:11 reports from the providers and owners?
That would really be
09:47:15 interesting to me.
Because the
09:47:18 PSH units are certainly addressing a
09:47:22 challenging population, and they're very much needed and I think the
09:47:27 buildings are beautiful.
Just be interesting to hear
09:47:30 how they're going in another year or
09:47:33 two.
>> Gina, can you speak to the
09:47:37 reporting requirements?
How we monitor the projects
09:47:41 going forward?
>> Sure.
09:47:44 So, my name is Gina Scott, she/her pronouns.
09:47:47 I'm on the risk analysis compliance team.
09:47:51 And our team oversees all the projects that
09:47:54 have regulatory agreements and
09:47:59 loan agreements so
09:48:02 we look at three parts.
If there is loan,
09:48:05 we look at the financial health of the project.
With these, we would
09:48:09 be looking at the financials.
We also look
09:48:12 at the property health, make sure that it is --
09:48:15 it's safe for the residents.
09:48:19 And, that the affirmative fair housing marketing
09:48:22 plans have been done to ensure that
09:48:25 people are getting into the units
09:48:29 that normally wouldn't apply.
We also look
09:48:33 the tenant reporting, which there is a lot of demographic
09:48:36 information in those that the owners are required to submit every
09:48:40 year.
So I can put something together in
09:48:43 a, you know, a year or two after they've --
09:48:47 after these are open, and then present it to the committee.
09:48:51 That's not a
09:48:54 problem.
>>
09:48:57 Thanks, Gena.
09:49:00 Appreciate that.
Allan, a question,
09:49:04 sir?
Comments for Jill?
>>
09:49:07 Yeah.
Thank you, Dr. Holt.
As we move through
09:49:10 these, it is so exciting to hear about the progress and
09:49:13 how all the goals are being met.
That is
09:49:17 fabulous every time we've been meeting these last few
09:49:20 times.
I have a question about the Barbur apartments and the process,
09:49:23 Jill, for not being a developer, what are sort of the
09:49:27 next steps and what happens if they're not
09:49:31 able to close the funding gap for that
09:49:34 project?
What -- how do we proceed then with
09:49:39 the bond.
>> I think this is one of those where
09:49:42 we're all going to be working hard to see
09:49:45 what can be done.
We,
09:49:49 PHB, has wanted to have a
09:49:52 southwest Portland project for our
09:49:57 framework.
We want one in every, call it
09:50:00 locality.
Right now we're working to see what can be done
09:50:04 in terms of shifting different
09:50:08 resources, working with OHCS so see if they
09:50:11 might be willing and flexible to move some of the
09:50:15 resources they might have granted us.
Metro
09:50:19 bonds.
In that particular pot of money, we have some
09:50:23 say.
Housing trust funds and
09:50:26 LIFT, we're looking at potentially keeping that, maybe
09:50:29 swapping some.
It's a lot of different
09:50:34 options.
Worse-case scenario, because the
09:50:37 Portland housing bond I think we made certain commitments to
09:50:40 the public about when we deploy the funds and as
09:50:43 you those funds or commit those
09:50:47 funds.
Ideally, we like to see if we can get our
09:50:50 project done.
It
09:50:53 may have to, call it,
09:50:56 redirect our efforts.
>> To add to that,
09:50:59 there's two major challenges
09:51:04 with getting funded.
The first is
09:51:07 getting caught up in the scarcity of
09:51:10 private funding state level.
We are working closely with the
09:51:14 state, understanding their forecast and subscription and how our
09:51:17 projects align.
And getting -- and being able
09:51:21 to get those allocations so that we can line
09:51:24 upper missing.
We can line up financial awards
09:51:27 to make sure all the gaps are addressed so all of
09:51:30 those pieces come together, but there is still
09:51:33 an over subscription.
So there is work that we will needed to
09:51:38 do to keep advocating to the state to make sure all the
09:51:41 private activity bonds go to affordable housing.
09:51:44 There's a lot of conversations, but
09:51:47 the housing alliance and other
09:51:51 advocaciy groups, I encourage you
09:51:54 all to plug into those advocacy
09:51:58 efforts because it should be -- we think of it as the highest
09:52:01 and best uses of affordable
09:52:04 housing, of that resource.
So that's thing number
09:52:07 one.
Thing number two is there is still a gap
09:52:10 at the project level that we are
09:52:15 trying to address
09:52:19 .
As Jill was saying, we've got project
09:52:23 gaps, frankly, every where because of escalating construction
09:52:26 costs, supply chain issues, labor shortages and interest
09:52:29 rates going up
09:52:32 by 200 basis points.
So collectively, as we've seen
09:52:35 30% increase in the last year in our
09:52:39 projects, and we see those, we don't necessarily know when
09:52:42 the trend lines will plateau.
So
09:52:45 we're forecasting forward to
09:52:48 address those that are next in line and triaging and
09:52:51 looking at where we can find additional
09:52:57 resources, federally, is sort of what we have most control
09:53:00 over and then having conversations with the state and metro
09:53:04 partners of where we can -- as much as we can
09:53:07 co-mingle our collective resources to make our
09:53:11 projects go.
So
09:53:15 both troubles, gap and prior activity
09:53:18 bonds, so we don't have -- we're not proposing a
09:53:21 solution as of yet but we will come back to you knowing that we are very
09:53:24 much aware and we are committed to meet
09:53:27 the timelines of the Portland housing bond that we
09:53:30 put out to the voters and may need
09:53:34 creative solutions next year.
>> Allan, the
09:53:37 question you asked about gap funding and
09:53:41 gaps is across-the-board and all of the developments
09:53:44 in affordable housing, in speaking with the
09:53:49 OHCS production manager, they're
09:53:52 looking at their pipeline also and saying they know a number of projects that's
09:53:55 already come in,
09:53:58 we see maybe OHCS funding or
09:54:02 LIFT or some other sources, maybe even with private
09:54:05 activity bonds, they will not close because the gap funding
09:54:08 is so big, they're just not able to close.
So
09:54:11 we're in a very difficult situation right now in the whole
09:54:17 market, not just PHB but everybody.
>> Great,
09:54:20 thanks.
I appreciate the context, too, around
09:54:23 kind of statewide and
09:54:26 OHCS and the sense there might be some advocacy
09:54:30 overall for making sure that, you
09:54:33 know, as a community, we're making
09:54:36 an investment and closing those
09:54:40 funding gaps so we can get these projects
09:54:43 moving forward or move forward and they're successful.
I
09:54:47 appreciate that context.
Thank you.
>> One last plug,
09:54:50 that's why we think alignment of all the resources,
09:54:53 of the local, regional, state and federal
09:54:57 really makes sense because if every
09:55:01 project, 10 projects have gaps, none of the projects will
09:55:04 go.
If we can save seven, eight
09:55:08 projects, at least the seven, eight will go.
09:55:11 So moving around, aligning those resources,
09:55:13 becomes critical.
Thank you.
>> Thank you.
09:55:18 Allan, any other questions or comments?
>> I wanted to
09:55:21 is a quick follow-up on that.
I'm just going to
09:55:25 make an assumption there is not a
09:55:28 good mechanism for that alignment of resources at this
09:55:31 time that we're sort of left for he folks
09:55:34 to scramble around and try to cobble that
09:55:38 together.
There is not a planning mechanism that allows us
09:55:41 to do that is
09:55:44 that accurate?
>>
09:55:48 We wish there was a membernism.
Right now
09:55:51 it is dollar, meaning reaching out and
09:55:54 working with them and vice-versa, but there
09:55:57 is no mechanism that would allow it so we are
09:56:01 hoping with your
09:56:04 support we can all advocate not just with PHB,
09:56:08 OHCS but between the local
09:56:11 jurisdictions and the state.
>> There could be leadership
09:56:14 decisions that encourages all the funding
09:56:18 partners to align timing
09:56:22 and/or resources across all the
09:56:25 participating jurisdictions or all the other local
09:56:28 jurisdictions.
So it could be a
09:56:32 mechanism, there just isn't really one right now.
>> Great, thank you.
09:56:35 I've heard that in other contexts, also, so
09:56:38 just wanted to confirm that.
Thank you.
>> Thank you.
09:56:41 Thanks for the report.
Thanks, Allan and
09:56:45 Jill, for the questions.
We will move forward in the
09:56:48 agenda to our quarterly expenditure report.
09:56:51 Angel?
I believe that is in your court.
09:56:57 >> Good morning, my name is angel
09:57:02 Landron Gonzalez, I'm the financial and accounting
09:57:05 manager for the Portland Housing Bureau.
May pronouns are
09:57:09 he/him, and I'm Latino.
The expenditure report
09:57:13 highlights as of September 30 of this fiscal year are the
09:57:17 following:
The
09:57:20 expended versus committed accounts increased
09:57:24 on construction compare with the previous quarter report
09:57:27 of the
09:57:30 project spanned has increased by
09:57:33 12.2 million, equivalent to 8.88%.
09:57:36 And the commitments have decreased
09:57:40 by 12.2 million, equal to
09:57:44 minus 10.18%.
The reserve
09:57:47 remains at
09:57:50 167,000, and the net interest and credits
09:57:54 remain at 2.28 million.
09:57:57 And that amount is planned to be
09:58:00 used for future projects.
09:58:04 If there are any questions, I
09:58:07 can get pack to Dr. Holt.
>> Thank you very
09:58:11 much.
I will go through our approach
09:58:14 that we've been using.
Susan, do you have
09:58:17 any questions or comments?
>> Yeah, I feel like
09:58:20 I should know the answer to this, but is there a year,
09:58:24 a date by which this bond
09:58:27 sunsets that we have to spend the money?
Because we
09:58:30 started in 20178, and now
09:58:34 start
09:58:37 ed in 2018 and now we're close to
09:58:40 2023.
I just don't remember that.
>> I believe we made a
09:58:43 commitment of seven years to the voters, so that puts
09:58:47 us out to 2024.
With you we should
09:58:50 look the at the specifics and come back to you, and look
09:58:53 at the very specific language on the measure so we're
09:58:56 all on the same page of what that means.
Becauses
09:59:00 as we know, projects sometimes take a couple
09:59:03 years to
09:59:08 construct so following the process we like to
09:59:11 think of it as the projects have financially closed
09:59:14 at that time.
That's some of the precision we need
09:59:17 to look at.
>> I did want to make one
09:59:20 clarification on the interests and credits,
09:59:24 the 2.28 million, that's not necessarily open.
It is really any of the
09:59:27 gaps that are in the pipeline.
The three
09:59:30 projects.
09:59:34 In other words, the number of units aren't
09:59:37 going to change.
And we will fully
09:59:41 extend the full amount.
09:59:50 >> Thank you very much, Susan.
Any other questions?
>> No.
09:59:54 >> Allan.
>> Great, thanks.
I don't have any questions, I
09:59:58 appreciated clarification about the, you know, the net interest and
10:00:01 other credits, funds that weren't
10:00:04 going to go to another project but are going to be used for
10:00:07 the gaps or for, you
10:00:11 know, in reserves.
So I assume that was the
10:00:14 case, too, in you think the verbiage that was
10:00:18 used was not as accurate, is what you just told
10:00:21 us.
You agree, I don't think it is going to go to another project.
10:00:25 We have projects in place we can use that for.
10:00:29 >> Thank you very much.
Thanks,
10:00:32 angel, for the report.
we'll move forward
10:00:35 in our agenda.
I believe we're going to talk about
10:00:38 a financial audit report.
Molly and
10:00:42 I am.
Give us the update.
10:00:52 Just a financial audit report.
10:01:01 Do we still have the same you a Jen
10:01:08 agenda?
Do I have something
10:01:11 that is difference?
The financial audit report.
>> We don't have a
10:01:14 slide for it but if Molly or Angel
10:01:17 want to give an update where they are at with the
10:01:20 process, that's where we're at on
10:01:24 the
10:01:27 agenda
10:01:30 .
>> We're going to have a final bond audit next
10:01:34 week, not quite in time with this meeting because
10:01:37 we've gotten the financial audit from the
10:01:41 auditors.
They're waiting for our response back to make
10:01:44 sure it final enough to be
10:01:48 published.
We didn't want to get ahead of ourselves and
10:01:51 submit something that was still technically a draft but we will
10:01:54 send that to you all once it is final.
10:01:57 Just sneak peek, things are looking really good in
10:02:00 terms of our fiscal responsibility
10:02:04 and making sure
10:02:07 every bonds were spent as
10:02:11 they were eligible expenses and
10:02:14 that they always make recommendations for programmatic
10:02:17 tweaks and process improvements, with you we
10:02:21 always appreciate.
So we are processing those and
10:02:24 putting together a response back.
But,
10:02:28 essentially,
10:02:33 we're working
10:02:37 we closely with the auditors and we will be able
10:02:40 to go into more depth next meeting to share the
10:02:43 highlights and the
10:02:47 findings.
Not material but
10:02:51 there's always programmatic findings to go over and
10:02:55 processes to address those improvements going forward.
>> I can add
10:02:58 that, basically, we received
10:03:02 the financial draft.
What we could is
10:03:05 reviewing everything, back and forth, making
10:03:09 sure that their recommendations or
10:03:14 findings are accurate
10:03:23 , we are working on responses to the final draft
10:03:26 so we are in the last stage of validation for the
10:03:30 review to be posted as final.
10:03:39 >> Thank you very much.
Any questions?
10:03:47 From our bond oversight committee?
10:03:50 I'm going to go in the same manner I've been going.
10:03:53 Susan?
>> I have no questions.
>> Okay.
10:03:55 Thank you.
Allan?
>> No.
10:03:58 Great.
Sounds good.
No questions from me.
10:03:59 Thank you.
>> Perfect.
Thank you.
10:04:03 Thanks for the report.
If I threw a curve ball in
10:04:06 there --
[laughter]
10:04:10 >> We thought it was going to be done when
10:04:13 we put the agenda together.
>> No worries.
I will say
10:04:16 this, in terms of cost and
10:04:20 escalation, it's across-the-board, not just in
10:04:23 the affordable house dying napm I can.
Some of you know
10:04:26 I'm in the midst of a remodel, and oh my
10:04:29 word.
10:04:34 [laughter]
Oh my word.
Yeah.
10:04:37 Where you start and where you stay is so different.
Our
10:04:40 next item on the agenda is a project team
10:04:43 presentations.
We have Cathedral Village and then we have Alder 9.
10:04:47 And we have time allotted of about 40
10:04:50 minutes for each presentation.
Which means that
10:04:53 each group has been 20 minutes.
What I am
10:04:57 going to do is set a timer.
You
10:05:00 will hear a sound.
When you hear the sound, you've
10:05:03 got a minute to wrap up.
We want to give space
10:05:06 for questions and comments for the group.
So
10:05:09 you're going to have 13 minutes to talk through your
10:05:12 information, then you're going to hear an alarm.
Once
10:05:15 you hear the alarm, it will be a minute and
10:05:19 then I'm going to wrap you up so we have an
10:05:22 opportunity interact.
I hope that makes
10:05:25 sense to everyone.
Yes?
All right.
10:05:30 Let's go to Cathedral
10:05:34 Village
10:05:38 .
>> Our team from Related Northwest is here.
10:05:42 >> I don't know how to change my camera so you get may side
10:05:45 view.
Not my best view but my side view.
10:05:49 [laughter]
So, good morning.
10:05:52 I'm Stef
10:05:55 Kondor with Related Northwest
10:05:59 here to plenty project that recently completed construction.
As
10:06:02 Jill said, we recently had our grand opening,
10:06:05 which was really well received.
Very proud about
10:06:09 this project
10:06:15 .
I personally, with Daniel
10:06:19 la, project manage this and it was a lot of fun.
It
10:06:22 is located in the St. John's neighborhood.
I
10:06:26 believe is the first PHB funded project in the
10:06:29 St. John's neighborhood so we're proud about that.
A
10:06:32 little about Related Northwest.
We opened
10:06:35 the doors four years ago.
This is the third project
10:06:38 we've completed.
You also through the Portland
10:06:42 bond completed the Crecent Court project, a few months
10:06:45 earlier.
So we're really excited to be able to deliver
10:06:48 housing through this Portland housing bond.
10:06:51 It's
10:06:56 been a really good tool for bringing about
10:06:59 housing quickly.
This is two blocks
10:07:02 away from cathedral park so folks are able to enjoy
10:07:06 the amenities close by to the
10:07:09 park.
Walking distance from the downtown hub and
10:07:12 grocery, and also walking trails along the river there and
10:07:16 great view of the bridge and forest park.
It is very well
10:07:19 received by residents tomorrow date we have 26
10:07:22 moved in already.
We have 200 people on
10:07:26 the wait list.
We have, I
10:07:29 think, another 19 applications in
10:07:33 and 10 that are fully approved.
So very
10:07:36 well received projects.
Next slide.
10:07:42 This is a partnership with all of our projects,
10:07:45 we work with area nonprofits
10:07:49 to bring also co-ownership
10:07:52 opportunities, meaning that they have an economic
10:07:55 interest in the project, they receive the benefit of,
10:07:59 you know, developer fee in sharing that and cash
10:08:02 flow.
They are typically providing services.
10:08:05 In this instance, Cathedral
10:08:08 Village, we
10:08:12 have Catholic Charities that is co-owning, providing
10:08:15 resident services on site, as well as case management
10:08:19 services.
We have integrated significant supportive housing
10:08:22 unouts they provide case management services to.
The
10:08:25 project itself is over 50% of the units are
10:08:28 family units with 45
10:08:32 twos and 11 three-bedroom units.
It is
10:08:35 a four-story wood-constructed
10:08:39 building, but we had the opportunity to upgrade the
10:08:43 cladding here with brick and met school very long-term durable
10:08:47 finishes that will stay nice in the
10:08:50 community.
We also brought in a local
10:08:53 nonprofit nonprofit by the name
10:08:56 of Vibe PDX.
They're in
10:09:00 St. Johns and looking to do an
10:09:04 after school program
10:09:08 .
The year has the oldest jazz
10:09:11 festival west of the Mississippi.
They
10:09:14 hold it at cathedral park.
We were north
10:09:21 fortunate to have a table there
10:09:24 and talk to the community.
10:09:27 We built outlining music technology room for them to record
10:09:31 music and via PDX teach
10:09:34 them how to use instruments and music and things like
10:09:37 that some we're really excited about them being a part of
10:09:40 this community
10:09:43 .
Our priority
10:09:47 community, serves these at risk
10:09:50 of homelessness.
Catholic Charities has been serving
10:09:53 Oregonians about 80 years and they work with a
10:09:57 lot of new
10:10:00 arrival, imp
10:10:03 imimmigrant and refugees,
10:10:06 and they do a great deal of really deep work with
10:10:09 our vulnerable residents and communities so they
10:10:12 have been the perfect partner.
We love working
10:10:16 with them.
We imagine that approximately 250
10:10:19 to 300 individuals will be housed at this
10:10:22 community.
Next slide.
10:10:27 So, it takes funding and expertise and
10:10:30 a lot of different folks to
10:10:34 bring about this very, you know, impactful
10:10:38 project.
We utilized about just
10:10:42 under $16 million of Portland housing bonds to create
10:10:46 this.
We have permanent financing of just
10:10:50 over 7 million.
We utilized low income housing tax
10:10:53 credits of 4%, tax credits at about
10:10:57 almost 11 million.
We have a deferred developer
10:11:00 fee.
We went after some grants,
10:11:04 so weatherization grants.
We
10:11:07 also got something that Head
10:11:12 co and the
10:11:20 foundation.
This is about deepening the affordable
10:11:23 of programs we can serve.
We
10:11:26 were award
10:11:30 ed a PG&E slower lar grant.
You sea on the
10:11:34 top a large solaria ray.
It should be fully
10:11:37 going over the next month or so, but we have
10:11:40 sized it to
10:11:45 completely
10:11:48 sized it for the property management lights,
10:11:51 community, so that allows us to have deeper
10:11:55 service like PDX and our resident
10:11:59 services.
It really does make a big
10:12:02 difference.
It reduces our
10:12:05 carbon footprint and many other things.
It is highly
10:12:09 visible over the St. John's bridge, you can look
10:12:12 down to the right going towards St. Johns and see
10:12:15 this property and the amazing
10:12:19 solar away.
Total cost, 36.2 million with
10:12:22 all of the sources that were brought into this deal, we
10:12:27 referraged that money 2.3 times.
So it
10:12:30 is a great tool to pair with other funding that
10:12:33 available in the state.
10:12:45 In current time, it is meed.
When we
10:12:50 did this a few -- it is occupied.
When we did this
10:12:53 a few days ago, we received
10:12:57 platinum, high efficient green building.
This is achieved
10:13:00 through the solar array, through
10:13:04 materials, methods of construction.
We feel really proud
10:13:07 we're bringing a very sustainable project.
Again, as
10:13:10 I mentioned, Vibe
10:13:14 PDX.
One thing that is noteworthy, if do you
10:13:18 drive by this property along Crawford, it
10:13:21 has a longer frontage and we decided to
10:13:24 bring in local artists that are BIPOC artists
10:13:27 to come in and do
10:13:31 a mural.
I think we have a slide
10:13:35 later on what this will look like.
It is trying to
10:13:38 emulate the arts in the community and character in the
10:13:41 community and bring more
10:13:44 vibrancy to that area.
10:13:47 You know, as we mentioned, Catholic Charities
10:13:51 doing the resident services and case management.
10:13:54 Eight permanent supported housing
10:13:58 units spread across the family units.
And
10:14:01 we're getting our second equity installment.
Because we
10:14:04 completed construction, we can bring a little bit more of that
10:14:09 equity into the field to pay down some of
10:14:12 our construction loan.
Next slide.
So, let's
10:14:15 see.
You know, we, too, face the
10:14:19 challenges that many are facing.
You know, I
10:14:22 feel like that we were really lucky this the sense that,
10:14:25 you know, we closed this project in January
10:14:30 of 2021, took about, I
10:14:34 think, 20 months, 21 months to complete.
Through
10:14:38 that, you know, we've -- this was basically
10:14:41 a pandemic baby, we say,
10:14:44 so we were smack dab in the pandemic.
We still were able to
10:14:47 hit our closing date and we still were able to
10:14:50 deliver on team.
You know, during
10:14:54 predevelopment, we did have some
10:14:58 construction cost increases.
This project is
10:15:01 located next to railroad.
Our
10:15:05 original design was oriented a little
10:15:08 different, but because of ODOT we had to
10:15:11 flip the building.
That cost a little more.
Also, you
10:15:15 know, we had to do the full break in
10:15:18 metal because of the requirement, the zoning
10:15:22 requirements in that neighborhood for sound transmission,
10:15:25 to deaden the sound transmission because it
10:15:28 is on the rail.
We're lucky because it
10:15:31 looks beautiful with these materials, but it
10:15:34 wasn't really a chose.
We had the
10:15:38 option to upgrade the platting there.
We added
10:15:41 fencing and a landscape buffer along the
10:15:45 -- what what you can't see is there is fence near
10:15:48 the burr and we will have slats to provide more of
10:15:51 a visual barrier, so
10:15:55 that will be nice
10:16:01 .
We had fiber-optic to relocate, the city fiber-optics so it
10:16:04 was about a million dollar change since the
10:16:07 fund ing award.
Not too, too bad.
We
10:16:10 didn't have to go back for additional
10:16:15 funds.
We were fundraising.
We got decent equity
10:16:19 pricing.
And the tax credit got fixed.
Before it was a
10:16:22 floating rate, it was 3.04 when
10:16:26 we first went into the deal, when we submitted.
When we
10:16:29 closed it had just gotten fixed.
We were able to
10:16:32 give the
10:16:36 city, Portland Housing Bureau $1.5 million back
10:16:39 when it closed because of that fix.
We
10:16:42 were pretty efficient with everything.
I feel very proud
10:16:45 about this project, we stayed well within budget and able to
10:16:48 get the equity pricing that we got.
Next
10:16:52 slide.
10:16:55 Okay.
We are knocking it out of the park when
10:16:59 it comes to
10:17:11 DMWESB.
LMC did a great job
10:17:15 getting subs interested in this project and really
10:17:18 expanding the sub pool.
We
10:17:22 achieved 38.65% for DMWESB participation.
I
10:17:25 think the goal was 30 spots we went well above and
10:17:28 beyond on this particular project.
10:17:32 Next slide.
10:17:38 Yes.
Every project exciting.
That's why I like
10:17:42 this sport.
This, the former use of this site,
10:17:45 how I found this site
10:17:50 was Silco
10:17:53 construction, the materials yard where they keep the trucks
10:17:56 and everything.
He wanted to go out and move out of the
10:18:00 area.
We did extensive due diligence
10:18:03 but the best-laid plans can sometimes change when
10:18:06 you start to dig into the
10:18:09 dirt.
The former use was a
10:18:12 lumberyard way back when but a storage yard
10:18:16 so instead of removing the
10:18:19 lumber, they decided to bury it.
As we were dig
10:18:22 we found more and more buried wood.
It was
10:18:25 like a treasure hundred
10:18:33 treasure hunt.
We had to remove that.
It
10:18:36 was a nail-biter for the first
10:18:39 month or two.
Buyer
10:18:42 beware.
It can be tricky.
There could a methane build up
10:18:45 so we had to go through whole DEQ
10:18:48 clean up pathway and everything.
We were still able to
10:18:52 keep our time and deliver on time but it was
10:18:55 challenging.
Covid presented a myriad of issues with
10:18:59 labor, keeping trades safe as they're
10:19:02 there.
You know, pricing escalations.
10:19:06 Longer construction times.
You
10:19:09 know, contingency
10:19:13 .
It is just a higher risk deal
10:19:16 in a very volatile market.
And insurance, we
10:19:20 did, right before close, have a real big pop
10:19:23 in builder's risk.
You're seeing that in
10:19:26 today's number, it has gotten worse.
Those
10:19:30 challenges will persist with
10:19:33 insurance.
>> I hate to interrupt you, you have a minute
10:19:35 left.
>> Oh, good.
I'm quick.
10:19:41 Here's what the -- just making sure I've got -- yeah,
10:19:44 this is the last slide, we're
10:19:48 perfect.
This is what the mural turned out to
10:19:51 look like.
We incorporated music, folks
10:19:55 celebrating and a bird.
So we tried to really, you
10:19:58 know, make it colorful and interesting.
We've
10:20:02 done a lot of out reach in the neighborhood, with the
10:20:05 neighborhood
10:20:09 associations, Cathedral Village jazz fest, all kinds of
10:20:13 things.
We got feedback to improve the site amenities
10:20:16 and room sizes.
All of our
10:20:21 units are thoughtful with pantries and
10:20:24 liveability and nice-sized units.
One thing to
10:20:28 note, this was an all female development
10:20:31 team and all female financing team so everybody
10:20:34 on the closing and most of the attorneys, all of
10:20:37 the funders aen ourselves was all women
10:20:40 led wish is kind of rare in
10:20:43 this world that I live in.
And it was
10:20:46 really smooth, one of the nicest
10:20:50 closings I've been on.
I'm proud about it
10:20:53 and thanks for letting me share about my kid.
>>
10:20:56 Thank you, wonderful presentation,
10:21:00 appreciate that
10:21:05 .
Susan, comments, questions?
>> It
10:21:08 looks like a wonderful building.
I'm sorry I didn't make it to the
10:21:11 opening but you would thereof visit.
A couple of questions.
I
10:21:15 wonder how many months you've allowed for Lisa, and I
10:21:18 would like you to just describe the laundry
10:21:21 facilities.
I am a long-term renter.
I raised my children
10:21:25 in an apartment building and I'm always asking the questions that
10:21:28 affect the residents, just so you know where I'm
10:21:31 coming from.
>> Yeah.
So we think Lisa
10:21:35 will take about six months.
We are targeting to
10:21:38 be done by the end of this year but we have until I
10:21:41 think March or April of next year from our
10:21:46 funder's perspective of things so I think
10:21:49 we're well ahead of schedule.
So
10:21:53 we should be totally leased by the end of the
10:21:56 year is our
10:22:00 goal
10:22:04 .
With the laundry, I hear you.
As
10:22:07 mother of three, I do laundry all the time,
10:22:10 unfortunately.
What we have done is put large laundry
10:22:14 rooms and we've got two in this building.
We
10:22:17 tried to put one on the second floor and one
10:22:20 on the third floor.
And they're right next to the
10:22:24 elevator lobby and outside of the laundry
10:22:27 room we actually have kind of a seating area for people
10:22:30 to come and hang
10:22:34 out, and it's beautiful because you can actually see
10:22:37 in this photo -- well, you can't see.
These
10:22:40 windows go all the way up so they can kind of look out at the
10:22:43 view and it is very nice.
10:22:47 >> Yeah, that's -- thank you for your
10:22:51 answers.
I'm really happy you've allowed six
10:22:55 months even if you get leased up sooner.
I think in
10:22:58 projects we've seen it is more
10:23:01 compressed and you're try stock thoughtful of the mix of
10:23:05 people and meat the threshold of who you're trying
10:23:08 to serve, six months is a good amount
10:23:11 of team for
10:23:15 time for a building of this size.
>> We
10:23:18 always try to build in cushion
10:23:22 on every piece.
Our thought is it is better to be
10:23:26 conservative and over deliver than under deliver, so we
10:23:29 do that kind of every step of the way, a
10:23:32 little cushion on everything because we don't want to have
10:23:37 any issues
10:23:40 .
There is always stuff so you want to build
10:23:43 in iodation get through the stuff.
>> Susan, any
10:23:46 more questions?
>>
10:23:51 No
10:23:57 .
>> Allan?
>> I don't know if you're on mute
10:24:00 but I can't hear.
>> You appreciate the work you've
10:24:03 done in St. Johns and engagement and partners
10:24:06 you have.
I don't have any specific questions but thanks
10:24:09 for being here.
>> We appreciate the presentations.
Thank you very
10:24:13 much.
We're going to move forward to Alder 9.
10:24:16 You will have the same
10:24:19 approach.
13 minutes of presentation.
You will
10:24:22 then hear the low kind of chime and that will
10:24:26 give you a minute and then we
10:24:29 will give opportunity for the bond
10:24:32 oversight committee members to engage so Alder 9.
10:24:46 >> Thank you, Dr. Holt.
I'm
10:24:50 Ryan, leading Alder 9.
This is a joint venture
10:24:53 in co-ownership opportunity.
Jones
10:24:56 is with us today.
This project was awarded
10:25:00 in February and we've been marching quick
10:25:03 three closing.
We anticipate closing
10:25:06 January 17 right now.
On the calendar for that
10:25:10 date.
We've got private activity bonds
10:25:13 allocated and we are full steam ahead.
It is such
10:25:16 a quick delivery because we are actually purchasing this site.
It
10:25:20 was already designed and it has been through
10:25:23 its design review and fully entitled.
10:25:26 We're picking it up.
It is designed originally as
10:25:29 a market-rate development.
Mostly
10:25:33 studios and one bedrooms.
The current owner couldn't get
10:25:36 it across the finish line.
We picked it up,
10:25:40 realized the vicinity is on the east side, 9th
10:25:43 and Alder, I think it is
10:25:46 morrison street and 9th, this view of it.
It is in a
10:25:49 great location.
A location that hasn't seen affordable
10:25:53 housing in so long.
It is just a great location.
So
10:25:57 we're repossessioning it as affordable,
10:26:00 targeting seniors and special populations we will get into a little
10:26:03 bit, as well.
Next
10:26:06 slide, please.
So our unit mix here,
10:26:11 we've got 159 total unlets.
Again,
10:26:14 we've kind of revamps to
10:26:18 add some two bedrooms and three bedrooms.
A
10:26:21 lot of that was from feedback
10:26:24 and the multi generational
10:26:28 houses we will be serving.
There are seniors living in
10:26:32 difference situations so we added 2
10:26:35 bedrooms and three bedrooms, which I'm excited
10:26:38 about.
That is a rare find for that
10:26:41 population.
We're integrating 25 permanent
10:26:45 supportive housing units and we've got on-site
10:26:50 services provided by Impact
10:26:53 Northwest.
We will get into that.
The main
10:26:57 provider is Centro cultural and primary
10:27:01 service partner.
They will operate an employment and continuing
10:27:04 education center on the premise.
They
10:27:07 will have resident services offices and a wellness center,
10:27:11 too, they will be helping to staff with impact northwest to
10:27:14 help connect seniors to health care services.
In addition to
10:27:17 that, we've got engage northwest.
They are an
10:27:21 award winning senior program, nonprofit.
They do really
10:27:26 interesting programs around mind, body and spirit.
They do
10:27:30 artist programming and movement programs so we have a
10:27:34 added an artist maker space, a
10:27:38 movement room which will be programmed for the
10:27:42 community.
We have SEI
10:27:45 and
10:27:48 IRCO doing engagement procedure the project and they're great partners, has
10:27:51 well.
10:28:02 We're estimating the estimated people houses
10:28:06 is 359 folks, once we're all leased
10:28:09 up.
Next slide,
10:28:12 please.
10:28:18 So a quick overview on the project funding.
The
10:28:21 Portland housing bond, 25 million there additional gap
10:28:26 award, 4.7 million.
We've got -- we're
10:28:30 in a QCT with quite a bit
10:28:33 of equity,
10:28:37 almost 37 million in
10:28:43 LIHTC equity.
We have metro
10:28:49 transition-oriented grant and with
10:28:52 the artist location on site so we're excited
10:28:56 with that.
Total project cost about 84 million, which
10:29:00 leveraging our initial reward at 2.3
10:29:04 times so trying to leverage as many
10:29:07 resources as possible to get this across the finish line.
10:29:10 Next slide, please.
10:29:14 So, just some general development projects
10:29:17 we're in pre-development now.
On the
10:29:21 calendar for a January closing.
We're out to bid right
10:29:24 now, so we're
10:29:27 using Pinch construction, also doing a joint
10:29:31 venture with minority construction group.
They've ban
10:29:34 fantastic partner throughout predevelopment it
10:29:37 hasn't been incrediblely active in affordable house
10:29:41 bug they've down nice job with engagement
10:29:44 on the cobid side of things and developing this
10:29:48 joint venture with minority construction group which
10:29:51 is helping that organization expand capacity, so
10:29:54 we're thrilled with the partnership there.
We're out to bid right
10:29:58 now.
I think I spoke earlier, the project was
10:30:01 mostly designed and entitled by we're doing a
10:30:04 permit restorm trackers accommodate
10:30:07 per
10:30:12 Mitt revision.
We will have the per
10:30:15 nit hand in December.
They've been great to
10:30:20 work with.
The permit was
10:30:24 originally opened in 2018 so it has been a white and it was
10:30:27 setting with dust on it at the office for a long timing, and
10:30:30 they've been working with us to get an extended
10:30:33 time line get that issued and we're
10:30:37 thrilled with the progress we've been making with them, as
10:30:40 well.
General project highlights, situated in
10:30:44 Portland's central east side, an area that has not
10:30:47 had a lot of affordable housing.
10:30:50 We're excited to reposition something that was market rate
10:30:54 as affordable.
It is kind of a unique
10:30:57 approach.
This allowed a quick delivery, 11
10:31:00 months almost from award to closing which is much quicker,
10:31:04 especially in a design overlay to get
10:31:07 it on the market.
So we're thrilled about that.
10:31:10 Amenity rich and enhanced with holistic services,
10:31:14 designed around this mind, body and spirit
10:31:18 philosophy.
A host of different areas and service partners on
10:31:21 site to kind offed help with this.
The employment
10:31:24 and educational building
10:31:27 hub, run by Centro cultural, the health
10:31:31 connect.
Residents with employment opportunities, continuing
10:31:34 education opportunities.
Population of 55, most folks are
10:31:38 working still at 55 so this is a great fit and also
10:31:42 allows Centro culture tool bring this program where
10:31:46 it is currently
10:31:50 operating.
We have a wellness
10:31:53 center.
The idea is to connect seniors with health care
10:31:57 resources.
They're going to be automobile to use that conference
10:32:00 calling and set up Medicaid and things like that.
10:32:04 We've got the artist maker space on
10:32:07 site.
And this was from community engagement
10:32:10 that helped inform us, that is
10:32:14 an important piece.
Central east side, there is a
10:32:17 large nonprofit artist community in the area so we're
10:32:20 serving the residents.
Engage is working on the
10:32:24 programming for that.
We have a movement
10:32:28 room, maybe yoga, we have all sorts of ideas there but
10:32:31 it is programmed by Engage northwest
10:32:34 and Impact northwest and Centro is there to
10:32:38 help, too.
A host of partners
10:32:41 there we're excited about.
They will be
10:32:44 on site.
I should
10:32:48 have put the ground floor plan on here.
It is really
10:32:51 cool.
It has an untierier courtyard
10:32:55 which will look really great.
We have a rooftop deck we will be
10:32:58 adding some planters.
We've got some
10:33:01 ideas on doing garden space and things
10:33:05 like that.
Again, senior programs.
I think
10:33:08 other highlight, deeply
10:33:11 affordable.
46 vouchers.
Just a host
10:33:15 of great affordable units on
10:33:18 site.
Milestones upcoming here.
Permits,
10:33:21 we're anticipating in December.
Closing in January.
We're going
10:33:24 to turn around and put our shovels in the
10:33:28 dirt right after that, January 20,
10:33:31 hopefully, and we're anticipating a construction completion in
10:33:34 December so we think 20-22 months to get this
10:33:37 fully online.
We've been doing a lot of due
10:33:41 diligence and predeveloped work to
10:33:44 make sure we have the construction tube.
Next
10:33:48 slide, please.
Material changes.
Again, you know, we
10:33:51 weren't awarded too long ago, I think the
10:33:54 biggest change an additional gap that
10:33:57 was basically due to cost escalation and rise
10:34:00 in interest rates.
I think Dr. Holt
10:34:03 mentioned it is crazy with escalation.
The
10:34:06 interest rate environment has been quite challenging, so
10:34:10 we tried to kind of adjust financing and such.
10:34:13 A few other bullet points, we have been able to
10:34:17 restructure thing as bit and add additional debt.
We
10:34:20 have additional vouchers we've been able to add
10:34:23 on site to bring costs down a bit so we've
10:34:26 been trying to be as creative as possible with getting
10:34:29 this across the finish line.
We're out to
10:34:33 bid now, confident today with the out reach to get
10:34:37 great pricing and get
10:34:40 our construction project locked down.
Next
10:34:43 slide, please.
In temperatures
10:34:48 of
10:35:03 DMWESB updates, the
10:35:06 cedar commons project is just
10:35:09 under 40% and we have a stretch goal of 35% right
10:35:13 now.
Again, we're out for beds.
I look forward
10:35:16 to updating you all once we get
10:35:19 a contract locked in place.
Professional
10:35:23 services, 26%, ahead of where the project goal
10:35:27 is, and we try blow that out of the water, as
10:35:30 well.
We're using TPA architects,
10:35:34 a majority couple-owned firm.
Unfortunately, they're
10:35:37 unable to certify based on the size of their organization so
10:35:41 they're not technically certified
10:35:45 NWSB firm but they are couple owned.
Great to work with them on this
10:35:48 first project and I think they will be active going forward.
10:35:51 Next slide, please.
10:35:56 Issues, challenges.
We've been hearing about this all
10:35:59 mornings.
The cost of the escalating interest rate environment
10:36:02 keeps things really excited on
10:36:06 our performance.
Five rate hikes last year
10:36:09 with put a wrench in some projects and the rising
10:36:13 escalation on construction costs, I think it's been
10:36:16 wild, press unprecedented we've been seeing.
Those I
10:36:19 think are the biggest challenges we've
10:36:22 had.
A design perspective, things
10:36:26 have been working smoothly.
BDS has been
10:36:29 working with us on permit revision.
It is
10:36:32 nice not to do the review, accelerate
10:36:35 the project, it is great for
10:36:39 everything and lowers costs and gets
10:36:42 it on the market quickly.
Those are the main
10:36:46 issues identified here.
Next slide.
For community
10:36:49 engagement.
We've done a host of community
10:36:53 engagement.
Suba, the arts laureate
10:36:56 of Portland, helped bring
10:36:59 artists together around arts programming and designed a
10:37:03 portion of that artist space, the maker space we have on
10:37:06 site.
They've been thrilled to see some space like that
10:37:09 coming into the central east side.
We've been able
10:37:13 to could outreach IRCO
10:37:16 to design
10:37:19 sized, layouts.
Gathering spaces.
Rooftop
10:37:22 grill and a gathering space to cook
10:37:26 food.
We've also kind of reached out and gotten
10:37:29 a ton of support from the east side
10:37:32 industrial council.
They're excited about
10:37:35 the moment center.
Excited about affordable housing in an
10:37:38 area that doesn't have much.
10:37:50 Market rate house ising is going to be
10:37:53 affordable.
We've reached out and
10:37:57 engaged Alan De La Torre, we will be piloting this
10:38:01 project, a case study, to look at outcomes, best practices and we
10:38:04 will gather data to kind of help assist
10:38:07 the city's initiative on adjusting
10:38:11 seniors and housing stability.
We're excited about
10:38:14 that possibility.
Worked on design bit there
10:38:17 and programming, so it has been a great
10:38:20 add for everybody.
>> Ryan.
>> Yes.
10:38:24 >> You've got a minute, sir.
>> Perfect.
Last
10:38:28 bullet point.
Develops great new
10:38:34 partnerships.
The theme is
10:38:37 expanding capacity.
We're thrilled to work with
10:38:40 Centro cultural and helps expand
10:38:45 their foot.
10:38:49 Jonas, we have about 30 seconds if you have anything to
10:38:52 add?
>> You are
10:38:55 correct.
>> We're super excited.
This is
10:38:58 an opportunity to sort of bring some of
10:39:01 our learned experience and working with community in
10:39:05 such a needed array of housing
10:39:08 choices.
Especially in the central east side.
And I think
10:39:11 this project team has been amazing
10:39:14 to get us o'er a lot of humps, so
10:39:18 we're pretty excited to get to Alder 9.
Thank you
10:39:21 for the opportunity.
>> You
10:39:25 guys were great.
>> Thank you.
>> Thank you, Ryan.
10:39:29 >> Thank you, Dr. Holt.
>> I didn't mention it to
10:39:33 Stef, as well.
Thank you.
You guys
10:39:36 were great in your timing.
It is always a challenge
10:39:40 to navigate when you have' got an agenda and you
10:39:43 want to make sure there is an opportunity, equal to
10:39:47 share.
Thank you both and being responsive in
10:39:50 participating with the process.
I
10:39:53 appreciate it.
Susan, comments, questions.
>> An exciting
10:39:56 project and thrilling about all your partners.
Aid question on
10:40:00 design.
In terms of Centro cultural and
10:40:03 impact northwest, will have you offices on seed for host to
10:40:08 organizations?
>> Yes,
10:40:12 Susan.
Thanks for bringing that up.
I wish I
10:40:15 had brought a ground
10:40:18 floor floored plan.
Centro cultural has
10:40:23 almost 900 square feet for resident services.
10:40:26 Impact northwest has an office on site.
All of this
10:40:29 is free for them to use, obviously.
10:40:32 Project costs.
They have an office and they will be
10:40:36 operating that wellness office, too.
So they have
10:40:40 two offices.
10:40:43 Engage Northwest will v an office, also the movement
10:40:46 room and artist space so we have
10:40:50 built-in facilities and office space for all the
10:40:53 parer ins and the property management space, as
10:40:56 well.
>> Great.
No further questions.
10:41:01 >> Okay.
Thank you very much.
Analis
10:41:05 you've joined us
10:41:08 .
Hello
10:41:15 .
>> Any comments or questions?
>> I missed
10:41:18 a good portion of it, so no comment or questions
10:41:22 but so say thank you so much, for the presentation
10:41:25 and especially the portion I was age to catch.
>> Thank you very
10:41:29 much.
Allan.
>> Thanks, Dr. Holt.
10:41:32 Thanks, Ryan.
This sounds really great, like all the
10:41:36 projects I'm so excited when we get to hear about
10:41:39 projects.
I'm curious.
I think I drifted off
10:41:42 for a motion and didn't get to fully hear what you were talking
10:41:45 about.
On the point of the fully entitled and
10:41:49 design piece that helped accelerate the project.
Can
10:41:52 you expand on that a little bit and what the benefit was there
10:41:55 in helping you move the project forward more
10:41:58 quickly and efficiently.
That is an important point when
10:42:01 we talk about affordable housing.
10:42:04 Folks would love to hear about it.
>> Thanks,
10:42:08 Allan.
The project was originally marketed as
10:42:12 a market rate building.
The current owners had
10:42:15 designed it and put it through and received, almost received
10:42:18 their permit.
They got it almost
10:42:22 permit-ready.
Part of that pro
10:42:26 of
10:42:29 that project was putting it through design review,
10:42:32 which can take months and it is time
10:42:36 consuming.
Instead of purchasing the site, like
10:42:39 a typical or former project would have done,
10:42:42 we're purchasing the site and the
10:42:45 entitlements that existed with it.
All we have to do is
10:42:48 a TI.
Tenant
10:42:52 improvement to the area.
There is design work there too.
What
10:42:55 would take a
10:42:58 is a
10:43:01 15-month process, we're able to do much,
10:43:05 much quicker.
I think 11 months from award
10:43:08 to closing.
I think a project like this without that advantage would
10:43:11 take an additional six months and a ton
10:43:14 of headache and lot of cost.
And a few gray
10:43:17 hairs.
[laughter]
>> Great,
10:43:21 thanks for your work on that.
Appreciate it.
>> Thank
10:43:24 you.
Great presentation.
We appreciate both of you
10:43:27 being here.
And again, thank you so much for working through the
10:43:30 confines and constraints of timing.
10:43:33 Good job.
I'm grateful.
>> Thank you.
10:43:36 >> Thank you.
>> We will go on with our
10:43:39 agenda, and we are now at the interim
10:43:42 director's update and part of our work arranged leadership for
10:43:46 this bond oversight committee.
Molly, to
10:43:50 you.
>> Good morning, everyone.
I'm
10:43:53 Molly Rogers, she/her pronouns.
The
10:43:57 interim director of the Portland Housing Bureau.
Happy to be
10:44:00 with you this morning.
Just wanted to make you all
10:44:04 aware, we have our two-year
10:44:08 term coming up around our vice chair and chair
10:44:13 positions of the
10:44:16 bond oversight committee.
I had the opportunity meet
10:44:19 with our chair and equity.
10:44:23 Allan, you are our vice chair?
Great.
We
10:44:26 wanted to open it up to see if
10:44:29 anyone would be
10:44:32 interested, that being
10:44:36 Anneliese and Susan, in serving, and
10:44:39 Allan, of course, if you're willing to continue
10:44:42 serving at either chair or vice chair.
Todd was
10:44:45 toupe
10:44:49 open to either scenario, to on it serve
10:44:52 or to step down.
I wanted to open the floor
10:44:55 to see if we had interest from others for another
10:44:58 two-year term.
As I would like to think of, they were an
10:45:01 exciting two years of all these projects opening up and
10:45:05 seeing all the people get housed.
>> Well,
10:45:08 let's go to Allan first, since he is here
10:45:11 and in the seat as the vice chair.
10:45:14 Allan, I would love to hear your thoughts.
>>
10:45:18 Thanks, Dr. Holt.
I'm happy to serve again.
10:45:21 Pe
10:45:24 the pay.
The pay
10:45:28 is good
[laughter]
Or I'm happy to step aside,
10:45:31 also.
>> I would thereof see some continued leadership, so
10:45:34 I would love to continue the current plan but
10:45:37 would love to hear from Susan, as well.
>>
10:45:41 Oh, I agree with
10:45:44 Anneliese.
I like the current plan.
Yeah, I'm
10:45:48 happy with things as
10:45:51 is.
And I don't know if we
10:45:54 need a motion and vote.
>> Exactly what I was going to
10:45:58 do.
Let's make a formal kind of approach.
And
10:46:01 the suggestion is that Todd would continue as
10:46:04 the chair, or the commitment or recommendation
10:46:07 is Todd would continue as the chair, Allan as
10:46:11 the vice chair for the bond oversight committee.
Can I have
10:46:14 someone motion?
>> I'll make that motion, as
10:46:19 stated.
>> Wonderful.
>>
10:46:22 I'll second that motion.
>> It has been moved.
It
10:46:25 has been seconded.
All in favor, if you will -- you know
10:46:28 what, I will call on you individually.
How about
10:46:32 that.
Allan, are you in favor?
>>
10:46:35 Yes, I vote aye.
>>
10:46:38 And Anneliese.
>> Aye.
>> And Susan?
10:46:42 >> Aye.
>> It has been moved, it's been carried and
10:46:45 it is now official.
Welcome back to the seat, sir.
10:46:50 >> We'll make sure Todd
10:46:54 is aware that he's still willing to
10:46:57 serve going forward.
We'll come back to this next
10:47:01 meeting.
But thank you, Allan, for continuing to
10:47:04 serve in this capacity.
Hopefully,
10:47:07 not too much work for you
10:47:11 that's commensurate with the pay.
[laughter]
10:47:15 >> He sounded really excited about his compensation
10:47:18 package.
[laughter]
>> Okay.
10:47:21 Well I am thrilled to share with you a few
10:47:25 more announcements, and
10:47:28 updates for you all.
I just wanted
10:47:31 to just take a moment to talk about
10:47:34 the Cathedral Village ground breaking, especially with
10:47:37 Related Northwest on the call.
It
10:47:40 was a beautiful day, and I found
10:47:43 myself actually getting
10:47:47 a bit
10:47:50 -- walking up, seeing the bridge
10:47:53 overview with all the various gardens
10:47:57 and the piece of how the residents
10:48:00 were integrating with healing music and all the
10:48:03 programming.
And it's been a few years since
10:48:07 we've been able to really gather, we've had a few of
10:48:10 these.
This was the second of six this year and I
10:48:13 highly encourage each of you to join us for the
10:48:17 next coming up.
Just that excitement of all this
10:48:20 hard work and just want to mention that, in
10:48:24 preparing for our presentation, made us
10:48:27 aware this is the first PHB financed
10:48:31 project in Cathedral Village in the St. John's neighborhood, and
10:48:34 that is all due to the Portland
10:48:37 housing bond.
It is not a TIF district, it
10:48:41 is not where we have other resources we've dedicated
10:48:44 to affordable housing and met a goal of providing
10:48:47 housing where there was scarcity over wise.
10:48:50 And that neighborhood is vibrant and it has changed quite a
10:48:54 bit, so toll able to come in and
10:48:57 have -- so to be able to come in and
10:49:00 have a beautiful, healing view for residents was
10:49:03 really mind blowing for me.
We've got another
10:49:07 thousand coming up, 1,000 units to be opened,
10:49:10 which will house thousands more people.
The need is so great
10:49:13 but we have to take these moments to
10:49:17 celebrate and applaud one another and thank you,
10:49:21 Related Northwest, for your great work here and I'm
10:49:24 excited for the next few coming up.
I also wanted
10:49:27 to share with you some internal staffing work that we
10:49:30 have announced earlier.
Just wanted to make sure
10:49:33 folks are acknowledged.
We have recently
10:49:38 promoted Tanya Wolfersperger, our infamous bond
10:49:42 coordinator, over these many four years and really has
10:49:45 seen the launching
10:49:48 and the really coming to fruition of all
10:49:51 her bond progress.
This is a great time for
10:49:54 us to see Tanya move
10:49:58 into a promotional opportunity as the housing development
10:50:01 and construction services manager.
Just wanted a
10:50:05 quick applause for Tanya.
10:50:08 [Applause]
It also
10:50:12 means we need to back fill Tanya, because it
10:50:15 is actually a big, big lift.
Not
10:50:18 only did Tanya help manage the Portland housing bond but
10:50:21 also our work with the metro housing bond.
As a
10:50:24 reflection of where we are with our progress and the
10:50:28 movement towards project completions and all these
10:50:32 openings, we are transferring this work on to Gena
10:50:36 Scott, our manager of the risk analysis and
10:50:39 compliance team.
Was promoted a few month he's
10:50:42 go.
She will be hiring a bond coordinator to be a
10:50:46 part of her team so thank you, Gena,
10:50:49 for taking that on.
So you will see new
10:50:53 faces here, and just our staffing is
10:50:56 reflecting where we are overall on
10:51:00 progress.
Wanted to also mention that
10:51:03 we have been -- we
10:51:07 were made aware that our sister
10:51:10 bureau, bureau of planning and sustainability, is going
10:51:13 to city council to
10:51:16 ask for some code revisions to the
10:51:20 Portland clean energy fund that
10:51:23 will, if passed
10:51:28 in October 19, October 19, will dedicate
10:51:32 additional resources to affordable housing to
10:51:35 help with our energy, the energy
10:51:39 components in our green building
10:51:42 policies.
Which will advance many of the seam goals
10:51:45 that we have with them around
10:51:48 equity and contracting, workforce
10:51:51 and -- workforce training, as well as
10:51:55 having as much green energy efficient buildings as
10:51:58 possible so things like solar, as
10:52:02 Stef was mentioning
10:52:05 earlier, charging stations and we're
10:52:08 hoping moving inner efficient air-conditioning components and
10:52:12 improved air quality and creative ways we
10:52:16 can do green building
10:52:20 components.
It is best to do as part of the design
10:52:24 of the project, so timing could not have done at a
10:52:27 better time.
If passed, we would have to quickly work
10:52:30 with our development partners to increase
10:52:33 the energy components.
So we just
10:52:38 wanted to thank all the
10:52:41 work that folks have been working on but
10:52:44 obviously this is all contingent on city council
10:52:48 approving this.
So just want to make you aware of
10:52:51 that.
And, of course, need to
10:52:54 acknowledge, we are working as
10:52:58 hard as we can to yet those three last projects ore
10:53:01 the finish line, and
10:53:04 working the Hipp
10:53:08 team and Jill Chen and the work they're
10:53:11 doing with the development partner to address the gaps.
It
10:53:15 is very dynamic because the numbers keep changing
10:53:18 really daily.
10:53:21 And, locking that in when we can get our housing financing with
10:53:24 parts of the state as well as how those projects are
10:53:28 moving forward through permitting
10:53:31 has been a challenge.
And so we've got
10:53:34 plans for two of those, and you
10:53:38 you think we already talked about
10:53:41 arbor, so I'm glad you brought it up, Allan.
It
10:53:44 is something that is on our minds and we are
10:53:47 having conversations with our commissioner on that and
10:53:50 we're having conversations with Oregon housing and community
10:53:54 services of how we
10:53:57 get -- meet the timelines of the
10:54:01 voter-approved bond measure.
Speaking of which, we know when that
10:54:04 comes to fruition, it will be a lot of
10:54:08 chatter about the next bond measure.
We know this is
10:54:11 the priority for commissioner Ryan, and we will be
10:54:15 relying on you all to continue leadership and that
10:54:18 voice of how much we
10:54:22 need, of how much we will continue to see the need for
10:54:25 more affordable housing production.
10:54:29 With that, it looks like we have a question in
10:54:33 the chat from Kirk Kreger that
10:54:37 the dedicated -- right now they're
10:54:40 dedicated 60 million over the next five years for our
10:54:44 projects in the pipeline and there will be other planning
10:54:47 work to be done for possibly more
10:54:51 resources.
If it
10:54:56 passes
10:55:00 .
Thank you for your
10:55:03 continues service
10:55:10 .
>> Thank you, Molly, for the
10:55:10 updates.
Any questions?
Susan, comments?
10:55:14 >> I think that is really exciting about what is coming
10:55:17 to city council and the opportunities that
10:55:20 presents is wonderful that there is all that internal work
10:55:23 that has gone out and I guess partnership between
10:55:26 city bureaus.
So I think that's
10:55:30 commendable and I'm really delighted to hear that
10:55:32 report.
Thank you.
>> Thank you.
10:55:37 Anneliese any comments?
>> Just echoing
10:55:41 what Susan said.
Excited to see the collaboration across
10:55:44 agency bureaus in the city and help us meet our
10:55:48 goals, so thank you so much.
>>
10:55:51 And, Allan, of course.
>> Thanks.
No questions,
10:55:54 just continued kudos to the
10:55:57 PHB team and the work you are doing.
It is so appreciated
10:56:00 from members of the community.
>>
10:56:04 Thanks, everyone, for being a part of the meeting today.
What
10:56:08 an incredible amount of work that is happening with all the
10:56:12 presentations, all the buildings that are being
10:56:15 opened.
The progress continues to happen.
It
10:56:18 is a testament to the commitment for this
10:56:23 valued work.
And being flexible
10:56:26 who newelled be here right now whom knew that things would
10:56:29 be, oh-we.
10:56:33 So out of anticipated pace
10:56:37 and causes such flexibility and
10:56:40 adjustments.
Big congratulations to all of you doing this work and on it do
10:56:44 it.
Congratulations to those transitioning and
10:56:47 moving into new pleases, moving into new seats.
Excited about
10:56:50 the work that is in front of us.
10:56:54 For those who continuously come to the